Ready-to-Drink (RTD) Coffee - Iran

The Ready-to-Drink (RTD) Coffee market in Iran is experiencing significant growth and development.

Customer preferences: In recent years, there has been a noticeable shift in customer preferences towards convenience and on-the-go products. This trend is reflected in the increasing demand for ready-to-drink coffee in Iran. Consumers are looking for quick and easy options that can be consumed anywhere, anytime. The busy lifestyles of urban dwellers, coupled with the growing popularity of coffee culture, have contributed to the rise in demand for RTD coffee.

Trends in the market: One of the key trends in the RTD coffee market in Iran is the increasing availability and variety of products. Local and international companies are introducing new flavors and innovative packaging to cater to the diverse tastes and preferences of consumers. This trend has been fueled by the growing number of cafes and coffee shops in urban areas, which has created a demand for premium and specialty RTD coffee options. Another trend in the market is the growing popularity of cold brew coffee. Cold brew coffee is known for its smooth and less acidic taste, making it a preferred choice for many consumers. This trend is in line with the global rise in demand for cold brew coffee and is expected to continue driving growth in the RTD coffee market in Iran.

Local special circumstances: Iran has a strong tea-drinking culture, and tea is the traditional hot beverage of choice for many Iranians. However, the younger generation is increasingly embracing coffee as a trendy and fashionable drink. This shift in preferences, along with the influence of Western coffee culture, has created a favorable environment for the growth of the RTD coffee market in Iran. Furthermore, the increasing number of young professionals and students in urban areas has contributed to the growth of the RTD coffee market. These individuals are often on the go and prefer the convenience of ready-to-drink beverages, making RTD coffee a popular choice.

Underlying macroeconomic factors: The growing middle class in Iran, coupled with increasing disposable incomes, has played a significant role in the development of the RTD coffee market. As more people have the means to spend on non-essential items, the demand for premium and specialty coffee products has increased. Additionally, the easing of international sanctions on Iran has opened up opportunities for foreign companies to enter the market and expand their product offerings. This has led to increased competition and innovation in the RTD coffee market, benefiting consumers with a wider range of choices. In conclusion, the Ready-to-Drink (RTD) Coffee market in Iran is experiencing growth and development due to changing customer preferences, increasing availability of products, and favorable macroeconomic factors. The convenience and on-the-go nature of RTD coffee, along with the influence of Western coffee culture, has contributed to its popularity among the younger generation. The growing middle class and the easing of international sanctions have also played a role in the expansion of the market. As the market continues to evolve, it is expected that new flavors and innovative packaging will further drive growth in the RTD coffee segment in Iran.

Data coverage:

The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:

Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on Non-Alcoholic Drinks, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Non-Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.